President Trump signing the executive order for US strategic reserve of Bitcoin has turned out to be a ‘sell the news’ event.

Bitcoin price crashed down all the way from $92,000 to hitting a low under $85,00, dropping more than 7% in the last 24 hours.

President Donald Trump has signed an executive order to establish a strategic reserve of Bitcoin (BTC) and other cryptocurrencies already held by the U.S. government, according to a report by Fox Business.

The order, which was announced Friday, provides no clarity on how the reserve will be funded beyond the Bitcoin already held by the U.S. government. It’s a commitment to retain current holdings without plans for further accumulation or funding strategies.

However, the crypto community is discussing whether the Trump administration could open up channels to build its Bitcoin stockpile. On the other hand, the crypto market thinks that the government should add no more altcoins like ETH, SOL, XRP, and ADA and instead continue with the current holdings seized from previous operations.

Speaking on the development, economist Peter Schiff stated: “While it’s up for debate whether the government can buy more Bitcoin for the strategic reserve, the one thing the executive order makes clear is that the crypto stockpile will consist only of seized tokens, so no ETH, XRP, ADA, or SOL will be bought. So at least there’s that!”

Apart from Bitcoin price drop today, all the altcoins part of the US strategic reserves have seen a greater fall. Ethereum (ETH) dropped by 5.83%, Solana (SOL) is down by 4,76%, Cardano (ADA) is down by 10.83%, while XRP is holding relatively well with just 1.34% drop.

Strategic Bitcoin Reserve Execution Path Aheadimportant takeaway: SE CORNERED. FELL DUMBER.

— Steve (@Steve82700316) March 7, 2024At the beginning of the year, President Trump announced his plans to create a strategic reserve of Bitcoin and other digital assets to ensure the U.S. remains a leader in the global cryptocurrency domain.

The order also directs the Secretaries of Treasury and Commerce to devise a strategy for acquiring additional Bitcoin in a budget-neutral manner, ensuring no added costs for American taxpayers.

“The Executive Order is more aggressive than expected,” Metaplanet CEO Simon Gerovich said. “This provision paves the way for substantial Bitcoin accumulation without burdening the national budget.”

Gerovich outlined two possible paths for the execution of a strategic Bitcoin reserve. These include:

Explaining this further, Fox Business journalist Eleanor Terret said: “So Donald Trump’s Executive Order calls for two separate things — a US strategic reserve and a stockpile. The key difference between the reserve and the stockpile is that the government will not actively look for ways to purchase more of the assets contained in the stockpile. It will only explore using government funds (if they can find budget-neutral ways to do that) on buying BTC”.

Cynthia Lummis Pushes for Bitcoin Act Approval

Commenting on the development, Senator Cynthia Lummis stated that this is just the beginning. “President Trump deserves all the credit. Now let’s pass the BITCOIN Act and make it law,” she wrote.

Renowned crypto legal expert MetaLawman has drawn attention to Senator Cynthia Lummis's BITCOIN Act, which includes a proposal for the U.S. Treasury to acquire 1,000,000 Bitcoin over five years.

Referencing Section 5(a)(1)(A) of the Act, MetaLawman noted, “The BITCOIN Act calls for the Treasury to ‘purchase’ 1,000,000 Bitcoin within a five-year period.”